2. **NATURE OF LEASE**. 

 The parties acknowledge and agree that it is their intent that this Lease be treated as a “true lease” for Federal income tax purposes.


 3. **LESSOR’S WARRANTIES**. 

 a. Except as otherwise provided herein, the Aircraft is leased to Lessee hereunder “AS IS, WHERE IS” and Lessor does not make or give any warranties as to the Aircraft, its airworthiness, design, fitness or
condition, or as to any other matter or thing whatsoever except for warranty of right of quiet enjoyment, and all warranties are, to the extent permitted by law or otherwise provided herein, hereby expressly excluded, except Lessor represents and
warrants that it has the legal right to lease the Aircraft hereunder, that the entering into and performance of this Agreement by Lessor do not conflict with any contract or agreement to which Lessor is a party or by which it or its properties are
bound or affected, and that this Agreement is in compliance with all applicable federal and state laws with respect to the status of Lessor in its capacity as owner/lessor of the Aircraft and in its status as operator of the Aircraft when the
Aircraft is in the operational control of Lessor, its affiliates or agents as contemplated in Section 4(d). 

 b. Except as otherwise
expressly provided in this Agreement, Lessor shall not be liable to Lessee for any loss, cost, damage, or expense of any kind or nature, caused directly or indirectly, by the Aircraft or the use or maintenance thereof, or by any interruption of
service of whatsoever and howsoever caused, other than interruption of right of quiet enjoyment.